Ch. 135

LAWS OF MARYLAND

Section 10-824

to be Section 10-823

Annotated Code of Maryland

(As enacted by Chapter ____ (S.B. 1) of the

Acts of the General Assembly of 1988)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

8-101.

(c) (2) "Financial institution" does not include:

(i) a finance company that makes loans only to
farmers for agricultural purposes; [or]

(ii) a company licensed under the federal Small
Business Investment Act of 1958; OR

(III) A CORPORATION THAT ELECTS TO BE TAXED AS
A SMALL BUSINESS CORPORATION UNDER SUBCHAPTER S OF THE INTERNAL
REVENUE CODE.

10-101.

(i) "S corporation" means a corporation that elects to be
taxed as a small business corporation under Subchapter S of the
Internal Revenue Code.

10-104.

The income tax does not apply to the income of:

(2) except as provided in § 10-304(2) of this title,
an organization that is exempt from taxation under § 501 of the
Internal Revenue Code;

(7) EXCEPT AS PROVIDED IN § 10-304(3) OF THIS TITLE,
an S corporation.

10-304.

Except as provided in Subtitle 4 of this title, the Maryland
modified income of a corporation, including a real estate
investment trust or regulated investment company, is:

(1) the corporation's federal taxable income for the
taxable year as determined under the Internal Revenue Code and as
adjusted under this Part II of this subtitle; [or]

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